Answered

Discover a wealth of knowledge at Westonci.ca, where experts provide answers to your most pressing questions. Our platform offers a seamless experience for finding reliable answers from a network of experienced professionals. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

TRANSACTIONS
1. Paid $2,100 for utilities.
2. Performed services for $10,500 on account
3. Received $6,500 from charge account customers
4. Paid salaries of $4,500 to employees
5. Paid $8,000 to a creditor on account.
6. Owner invested $90,000 in the business.
7. Purchased $26,700 of supplies on account.
8. Purchased equipment for $21,000 cash
9. Paid $6,000 for rent (in advance).
10. Performed services for $7,800 cash.
Indicate the impact of each of the transactions below on the fundamental accounting equation (Assets Liabilities+Owner's Equity) by placing a "+" to indicate an increase and a "-" to indicate a decrease. The first transaction is entered as an example. (If transaction causes one account to increase and another to decrease within the same classification of the accounting equation, select +/-)
Assets Liabilities +Owner's Equity
Transaction 1
Transaction 2
Transaction 3
Transaction 4
10. Performed services for $7,800 cash.
indicate the impact of each of the transactions below on the fundamental accounting equation (Assets = Liabilities + Owner's Equity) by placing a "+" to indicate an increase and a "-" to indicate a decrease. The first transaction is entered as an example. (If transaction causes one account to increase and another to decrease within the same classification of the accounting equation, select
+1) Assets Liabilities Owner's Equity
Transaction 1
Transaction 2
Transaction 3
Transaction 4
Transaction 5
Transaction 6
Transaction 7
Transaction 8
Transaction 9
Transaction 10

Sagot :

anthougo

Answer:

Transactions and their Effects on the Accounting Equation

1. Paid $2,100 for utilities.

Assets (Cash -$2100) = Liabilities + Equity (Retained Earnings -$2100)

2. Performed services for $10,500 on account

Assets (Accounts Receivable +$10,500) = Liabilities + Equity (Retained Earnings +$10,500)

3. Received $6,500 from charge account customers

Assets (Cash +$6,500; Accounts Receivable -$6,500) = Liabilities + Equity

4. Paid salaries of $4,500 to employees

Assets (Cash -$4,500) = Liabilities + Equity (Retained Earnings -$4,500)

5. Paid $8,000 to a creditor on account.

Assets (Cash -$8,000) = Liabilities (Accounts payable -$4,500) + Equity

6. Owner invested $90,000 in the business.

Assets (Cash +$90,000) = Liabilities + Equity (Common Stock +$90,000)

7. Purchased $26,700 of supplies on account.

Assets (Inventory +$26,700) = Liabilities + Equity (Retained Earnings +$26,700)

8. Purchased equipment for $21,000 cash

Assets (Equipment +$21,000; Cash -$21,000) = Liabilities + Equity

9. Paid $6,000 for rent (in advance).

Assets (Cash -$6,000; Prepaid Rent +$6,000) = Liabilities + Equity

10. Performed services for $7,800 cash.

Assets (Cash +$7,800) = Liabilities + Equity (Retained Earnings + $7,800)

Explanation:

The effects of transactions on the accounting equation of assets = liabilities + equity demonstrates that each transaction affects two accounts and makes the equation to remain in balance.

Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.